I never understand when there is a chance to make money and when there is not in arbitraging. Do you have a formula to calculate if its worth it to apply your system?
You are viewing a single comment's thread from:
I never understand when there is a chance to make money and when there is not in arbitraging. Do you have a formula to calculate if its worth it to apply your system?
So what I do is I look for the really obvious opportunities and try to figure out why?
In this case SBD was worth a dollar most places, but it's worth a dollar thirty on Polo.
Next step is to find the path from lowest to highest using a nearest neighbor algorithm.
The way I do this is I have a feed scavenger setup for every exchange I trade on. It's constantly receiving pricing and orderbook data. I then feed that into a graph database.
From here the strengths of a graph DB take over. You can simply ask the DB, what's the optimal path from point A (BTC) to point B (SBD). As soon as I have SBD I'm going to trade it back for BTC, because 30% premium is huge. It's not normally that simple though. Normally there is an optimal round trip you need to calculate.
It looks like A - B - C - D - A in fewest steps, but highest spread. Again graph DBs are incredibly helpful here.
I only have about $10k I trade with, whenever my money hits more than a 30% increase I do a draw down to something safer than crypto.
I make the bulk of my money building custom trading bots for people, so finding ways to be creative about trading is just something I enjoy doing. Secret sauce for modern arbitrage engines is a good solid graphdb though.
Hello, I am called Irina. You could will share source codes of a boat!? =) I Uda very much, very grateful ;)
Здравствуйте, меня зовут Ирина. Могли бы вы поделится исходниками бота !? =) Я буду очень, очень благодарной ;)
Wow amazing. I didnt understand a lot of what you replied. Never been really good in programming and stuff. I bet other people learned a few things from your reply though.
Thanks for the answer! Ill keep trading forex I think. Easier for me. I wish I could understand what you are talking about...